It may not be publishing’s biggest problem, but it’s certainly one of the top ones — and one we could ourselves cure, if only we had the will. We insist on being willing to take back books we have “sold”, giving full credit for them. What this means is that you never really know what the sales of a book are: they may all be out there in bookshops — but nobody knows how many, and when, they’ll start turning up at the warehouse with a request for a refund. But we are apparently hooked on returns. Returns are crazy. Returns of POD books are crazier. And returns of ebooks are beyond crazy.
NPR has a story about authors protesting Amazon’s returns policy on ebooks, which allows you seven days to cancel a purchase made in error. Now of course seven days is more than enough to read almost any book, so if you are a ruthless reading addict, you can avoid ever paying for a book. If the book’s too long, I wonder if, having bought it “in error” one week, you can buy the same book “in error” a week or so later after having gotten credit for the first purchase — and so on until you’ve managed to finish the tome, when you finally return it for the ultimate credit. That this should be an option is nuts. Obviously Amazon, maniacally customer-friendly, want to encourage you to buy that pair of shoes, confident in the knowledge that if they don’t fit, you can return them for full credit, no questions asked. This quite rational policy just gets extended to all products, and bingo, books are priceless.
With ebooks of course there’s no physical object being swapped back and forth — all the reader is getting is access to a file, then giving up that access when their money is refunded. So the publisher isn’t losing anything more than the tiny electronic cost of doing these transactions. The author though, having gotten a royalty credited to their account when the ebook was first “sold”, has to watch that royalty being clawed back from their account.* This looks a lot more like losing something real! Of course both parties have immediately lost another potential customer. Assuming there’s a finite number of people who might ever buy a particular book, if lots of them are able to read it for free, that represents significant damage to the ultimate earnings of author and publisher.
I think it’s obvious that seven days is far too long to allow a customer to decide to return a product for credit. Maybe if it’s a pair of pants it’s understandable that they need to be delivered and tried on before you know whether they fit or not. I do know people who have bought an item of clothing, worn it to a party, and then returned it for credit the next day. Even this, although utterly immoral, is not quite as ludicrous as “buying” an ebook, reading it, and rerunning it for full credit.
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* OK, OK; there can’t be many authors who have real-time access to their royalty statement.